SPECIALTY PLATES MAY FACE AUDITS

State lawmakers seeking safeguards to ensure money being spent as promised

SACRAMENTO — California lawmakers trying to establish new specialty license plates this year said Wednesday they are moving quickly to amend their bills and enact safeguards to ensure the money is spent as promised after an Associated Press investigation raised questions about oversight of the program.

Several lawmakers said they are changing their bills to include regular audits as a way to assure the public that the extra fees drivers pay for the specialty plates are going to the right place. Some also are calling for ongoing oversight of all the specialty license plate funds and say the state should return the millions it has borrowed from one of them.

A key lawmaker leading a transportation committee said he plans to hold legislative hearings to examine the program.

Brown on Tuesday ordered an audit of California’s specialty license plate program after a review by the AP found there was little oversight of the $250 million raised in the 20 years since the Legislature authorized it.

“I’m going to support maximum transparency and accountability,” Assemblyman Jared Huffman said in an interview on the floor of the Assembly. “I saw that the governor’s calling for an audit, and that’s great. Let’s make sure we’re keeping faith with the voters and whoever buys these license plates.”

The San Rafael Democrat is leading a high-profile effort to create a new license plate that would help the financially embattled state Department of Parks and Recreation, which is trying to avoid the closure of dozens of state parks because of the state’s ongoing budget deficits.

Organizations and agencies participating in the specialty plate program must report annually to the state Department of Motor Vehicles about money collected and the percentage spent to promote the specialty plates, which isn’t supposed to exceed 25 percent of the revenue.

Other than that, there is no direct oversight. The nonpartisan Legislative Analyst’s Office has never examined the program, nor has the independent state auditor’s office.

The AP also found questionable use of millions of dollars raised from the sale of special memorial license plates created in the wake of the 2001 terrorist attacks.